It has been a roller coaster of a first half for flooring retailers, with wide swings in business activity occurring month-to-month—even week-to-week in some cases. The normal ebb-and-flow of business has been replaced by unpredictability, the likes of which some veteran dealers have not witnessed.
“The first six months of business have been unlike any year I can remember,” said Bruce Odette, president/owner of Denver-based Carpet Exchange, with 19 locations. “It’s basically just the inconsistency of sales week to week. As April began, strong sales momentum followed. However, instead of a steady pace, we experienced two weeks of robust sales followed by a slower week. In the end, we are putting together a strong month, but you must work a lot harder for the order than in years past. If you are not aggressively going after the business right now, you are going to fall behind.”
The uncertain nature of business in 2024 has generally meant slower retail traffic one week, or month, followed by a surge. Despite the unevenness, many retailers have posted gains. A case in point is Ted’s Floors & Beyond, Anniston, Ala. Through April 30, business was down 6.5% from the year-ago period. But that four-month deficit was wiped out by a May explosion in which sales soared 61%, catapulting the business to plus 2% for the year.
Retail roundup
“This year’s store traffic has been even slower than last year so far,” said Ted Gregerson, president/owner. “However, larger invoice sizes have definitely saved us. A large part of our marketing this year has been promoting total kitchen and bath makeovers, including flooring, showers, cabinets, countertops and backsplashes. As a result, we are getting many more total makeovers, which are almost always huge invoice sizes.”
The slower retail traffic trend has been felt at Barefoot Flooring in Castle Hayne, N.C. However, like Ted’s Floors & Beyond, larger tickets across multiple categories saved the day. “We have seen an extraordinarily balanced demand for carpet, tile, hardwood, laminate and LVP,” said John Bretzloff, president. “This is a welcome change. I have been disappointed with the lack of bump from this being an election year, but given the inflation and dismal state of other aspects of the country and the world it shouldn’t be a surprise that people are reluctant to spend. Those who have made their way into the showroom, however, have made substantially larger ticket purchases.”
Not all retailers are experiencing a dip in retail traffic. For example, Home Carpet One in Chicago has seen an increase in retail traffic and number of orders (up roughly 10%), albeit with a decrease in the average ticket. “Overall, our retail business is up for the year, which we didn’t expect,” said Joel Schreier, president. He added that overall business in 2024 is down 1%-3% “depending on the week,” with the biggest drop-off in his designer business.
Driving sales
In challenging times like these, retailers use every resource, every tried-and-true best practice, to generate business. Carpet Exchange has leveraged its 24-month interest-free financing to great success. “With higher interest rates prevailing, this offer has motivated consumers to move out of postponement mode,” Odette explained. “We are having to use the finance offer a lot to close deals.”
Specifically, the carpet and LVP categories continue to perform well for Carpet Exchange. Odette said he is also seeing a resurgence in the hardwood category. “We are optimistic that sales will remain robust in the second and third quarters as April and May finished very strong,” he noted.
Robust sales have also been the story at the Vertical Connection Carpet One, Columbia, Md., which enjoyed double-digit growth in the first half vs. the year-ago period. “Increased marketing spend has helped drive opportunities,” said Adam Joss, president/owner. “We’re seeing higher close rates—not necessarily higher ticket sizes. A combination of improved sales process combined with more educated consumers ready to buy [has proved successful].”
As it nears the end of its first half, Myers Flooring, based in Nashville, is relieved to be just slightly off from last year’s totals. That’s according to manager Doug Peeples, who acknowledged: “Our challenges remain the same—hiring and keeping qualified staff and hiring good, qualified installers. Traffic is consistent, margins are slightly up; however, we are experiencing some production delays with higher-end goods from overseas.”
Peeples was referencing the geopolitical events that are happening in the Red Sea region, causing cargo ships to be diverted from the Suez Canal to a longer route around the Horn of Africa and up the Cape of Good Hope. That has resulted in product delays and an increase in freight costs.
Given the ongoing challenges of inflation and shipping coupled with a presidential election still to be decided, Peeples cautioned, “We are not taking anything for granted.”
